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Karasik et al. v. Liberty Development Corporation et al

NOTICE OF DISCONTINUACE OF PROPOSED CLASS PROCEEDING RE:
COSMOS TOWER DEVELOPMENT PROJECT

Please read this Notice carefully as it may affect your legal rights.

By Order of the Ontario Superior Court of Justice, persons resident in Canada who entered into agreements of purchase and sale with 1945086 Ontario Inc. or 1945087 Ontario Inc. (the “Vendors”) to acquire pre-construction condominium units in the residential condominium development project known as “Cosmos Towers”, to be built in the City of Vaughan, Ontario, and whose agreements of purchase and sale (“Agreements”) were cancelled by notice delivered by the Vendors, the project manager Liberty Development Corporation (“Liberty”), or the land owner 1834371 Ontario Inc. (“183”), on or about April 4, 2018, are advised that:

On October 29, 2019, a proposed class proceeding was commenced against the Vendors, Liberty, and 183 (the “Defendants”) with respect to the cancellation of Agreements for condominium units in a residential development project known as “Cosmos Towers”, to be built in the City of Vaughan, Ontario (“Cosmos Towers” or the “Project”). In cancelling the Agreements, the Vendors notified purchasers that they did not receive confirmation of financing for the Project on satisfactory terms (“Financing Condition”), and the Financing Condition in the Agreements was therefore not met.

The Plaintiffs allege that the Vendors’ decision to cancel the Agreements was not made in good faith. In particular, the Plaintiffs allege that if the Vendors had made such efforts, they would have been able to obtain Project financing on terms satisfactory to the Vendors. Accordingly, the Plaintiffs claim that the Vendors’ decision to invoke the Financing Condition and cancel the Agreements was not made in good faith and in breach of contract. The Plaintiffs also claim that Liberty and 183 assisted or encouraged the Vendors to breach the Agreements and conspired with them to wrongfully terminate the Agreements so as to benefit from Toronto’s rising condo prices.

The proceeding was brought on behalf of all persons who entered into Agreements to acquire pre-construction condominium units in Cosmos Towers (the “Entire Purchaser Class”). The proceeding was also commenced on behalf of an alternative class of persons, consisting of the Entire Purchaser Class, less those persons who participated in an application before the Honourable Justice Penny to have the Financing Condition declared null and void (the “Alternative Class”).

Copies of the Statement of Claim, the Notice of Application, and the decision of Justice Penny can be accessed through the links below. In August 2020, the Plaintiffs and their legal counsel (Adair Goldblatt Bieber LLP) decided that the class action will no longer be pursued. They filed motion materials with the Ontario Superior Court of Justice to obtain approval of the discontinuance. The discontinuance was approved by the Court and took effect on December 17, 2020.

Copies of the Plaintiffs’ motion materials and the Court’s Order can be accessed through the links below.

YOU SHOULD TAKE NOTICE that the limitation period for bringing a claim, if there is any time left within it, started to run again on December 17, 2020. On the expiry of a limitation period, your right to sue may be extinguished.

PLEASE ALSO TAKE NOTICE that because the limitation period for bringing a claim has started to run again, if you wish to pursue a court claim against any of the Defendants in relation to the cancellation of the Agreements, you should issue a Notice of Action or Statement of Claim forthwith, if you have not already done so.

If you have any questions about the discontinuance or the recommencement of the running of the limitation period, please contact Adair Goldblatt Bieber LLP at:

ADAIR GOLDBLATT BIEBER LLP
95 Wellington Street West
Suite 1830, P.O. Box 14
Toronto ON M5J 2N7

c/o Jordan Goldblatt (50755H)
T el:  416 920 9777
Email:  jgoldblatt@AGBLLP.com

PUBLICATION OF THIS NOTICE HAS BEEN AUTHORIZED BY THE ONTARIO SUPERIOR COURT OF JUSTICE.

  PLEADINGS

  MOTION MATERIALS TO DISCONTINUE

  COURT DECISIONS AND ORDERS